How to start a Business in India? is the most common question in front of Entrepreneurs that’s why today we will study how to start business in India, but before that we should know this things.
India has ranked third in Global startup ecosystem and bangalore has became the silicon valley of India, and according to economic survey Indian startups witnessed a funding of 7.5 billion dollar in 2018.
But according to many surveys conducted in India, 90% of total Indian startup fail in their first 5 years, because many of them start their business without knowing how their company will make money or profits.
So before starting a business we should know how businesses make money
We can make money from 6 ways
1. Providing Service
This is the most famous money making model and most of you will be knowing it, so how we can make money by providing service.
For ex. You are going to office and you are already very late so you will take a cab or auto-rickshaw to reach your office fast, and you will pay to them for their service.
How we can make money from expertise
For ex. If you are a business man you have to make a marketing team, Hr team, accountant, Management team etc. This all people has a deep knowledge of their field means they are expert in their work and for sharing their expertise with your company they are getting salary.
How we can make money with sales?
For ex. If any company has made a new product but they doesn’t have a marketing or sales team, you can help them by selling their product in the market and this can earn you a commission.
Here you can sell your product as well
4. Educate People
You may be have heard many times that education has now became a business, it’s true.
For ex. If you are champion in karate or any other sports then you can open your own institute to give the training of karate to school students.
How we can make money from experience
For ex. If you are a small businessman and you want to expand your business but you don’t know how to expand then you can hire a business consultant who has a experience of 20-30 years in your industry, He will give advice to expand your business and you have to pay him to advising you.
Entertainment is a very big industry and according to a survey, 75% of Indian population spends 200 to 3,000 Rs per month on entertainment, so you can make a huge amount of money from entertaining people
How we spend money on entertainment without knowing
Tv recharge around 150 to 400
Mobile recharge around 100 to 400
Wifi router recharge around 500 to 1,500
Premium version of Hotstar, Netflix, Amazon prime around 100 to 500.
Now after knowing all the ways to make money we will discuss How to start a business in India
11 steps guide on How To Start business in India
1. Step - Deciding Business Ideas
Many people get confuse here that we should have a unique idea to start a business, but we can make any Business idea unique by adding some tadka or imagination in it.
So Choose a good Business idea and start researching about it and make a list of your all competitors as well as strategies used by them to get more customers.
Observe them in detail and make a list of most successful people in your industry and try to learn from them, after conducting a detailed research on your business idea,
Start to think that how can you add some more value in your customers life compared to your competitor.
Always take a feed back from you customer so that you can make changes in your product and Always be flexible in Business and select a good Business idea.
2. Step - Business Plan
I have everything in mind, why even I need a business plan to start my small business?
Trust me; the business plan will make the things more efficient and straightforward.
“Without a business plan, Ideas are just Wish.”
But, if you can’t draw your profits on paper then how you can make it in reality.
Infact, it does not need to be lengthy paper work but can be a one page plan just to give clarity to your visions and how will you achieve it.
If you are willing to raise funds for your business, a proper business plan is must for investors including product, market, financials, team, marketing, revenue and much more.
Once you have made a business plan lets jump to next step.
3. Step - Business Registration And legalisation
You can register your business online and it may take very less time and money as compared to offline registration, but if you want to register your business offline then you can click here to get detailed information on how to register your business offline.
There are various type to register your business LLP and Private limited company are most common.
If you want to scale your business rapidly then I will recommend you to form a private limited company. Minimum two share holders are needed to run this company and maximum 200.
If you want a detailed information on which type of company you should form then click here.
4. Step - Finance and Bugeting
Learning finance and budgeting is a very important part for a businessman, you can hire an accountant or learn every thing about financing on Youtube or google. Many Entrepreneur make mistakes here.
For ex. If you are doing a business of t-shirt printing , so you bought some t-shirts from a company 70 Rs each and your printing cost is around 30 Rs and you are shipping cost is approx. 40 -50 Rs, total = 150.
Now assume that you kept your margin low from your competitors to gain more customers may be 10 Rs, now your business is running very well from past 1 year.
But in next year due to rain or some other reason the price of cotton increased by 20 to 30 Rs then you will get the same t-shirt at 100 Rs and the total manufacturing cost became 160 RS because you have kept your margin very less you can’t survive in this situation.
Before setting your final price you have to calculate many things.
So learn finance read some books of financing or hire someone who can help you in it.
5. Step - Prototype
A biggest myth in Indians about business is you have to invest lakhs and crores in Business, I am not saying that you have to invest nothing, but I am saying that just invest a basic amount like 2000 to 3000 Rs and make a small prototype.
Even big companies doesn’t launch their product directly, first they research and launch a prototype and they try to get customers feedback and after converting feedback into feed-forward they make a new product as their customer wish.
Why prototype is important
- It requires a very less time and money to make it.
- Prototype mainly fails means if your prototype is failed don’t worry because it was not even your first product, the most important is to take feedback.
- It’s give you a Idea that what people likes and how they want your product look like.
6. Step - Find Your Target Audience
Many entrepreneur do the mistake of trying to sell their product to everybody rather then targeting people who are really willing to buy that product.
For finding your target audience you have to do a detailed research on your customers. For ex. their Age, Country, Language, gender, community, interest etc.
If your business is online then finding your target audience is very easy.
After finding your target audience you have to reach out to them for creating your brand awareness in your target audience. Then just use of triggers, useful for you to convert awareness into conversion.
Targeting a particular group of audience is very important in any business because your audience show you business and if you are targeting to all the people then you are not running a Business.
7. Step - Have a online Presence
Things are changing in India more and more people spend most of their free time in social media. So you have to be present on every social media platform to create brand awareness in your audience.
You can even gain customers from website and facebook page and your website is like your identity so having a website is must, don’t worry you can make your website with very less amount.
Having a online presence is the must for all business, many big offline business also has their own website and even you can earn from website. If you didn’t know how to earn from website click Here.
Click here if you want to make money from Youtube because it is dominating all the social media platforms.
8. Step - Surviving the Business
Many survey’s and many successful people says that the first two years of any business are survival years, because this are the years when you are trying to build your empire and it will be very hard to cross this 2 years.
Many times it can happen that when you enter in the market you will grow like a rocket, but after some years the time may come when you will on survival mode.
So just be calm and let it go, just be patient.
This is the time where almost 90% Businessmen Quit and shout down their companies.
9. Step - Learning the Business
According to one survey in India many people wants to start a business but 50% of the total people who wants to have their own business doesn’t even start their business, and 80% of the remaining 50% who start their business fails because they does not know How to grow their .
So you should learn different things like marketing strategies, Business models, Biographies of successful people, finance etc.
Being a entrepreneur you should know business terms like neuro-marketing, guerrilla marketing, blue ocean strategy, entry barrier etc.
Read this Article – Books essential for entrepreneur to read
And if you have not yet selected any business Ideas then read my article 11 Business Ideas with Low to No Investment
Thanks for reading and Good luck for your entrepreneurial journey.
Starting a Business is not really easy as many people thik or say it’s way to difficult, you have to invest time, energy, your mind to grow it and make it profitable.
Did you know two most hard steps in running your Business are
- Starting a Business
- Not to Quit it
If you have made your mind to start a Business then start it don’t think more about it because Regret of not starting a Business is more powerful then regret of failing in Business.